Ok, nevermind the above. I went to the Boot Menu and selected the same option that allowed me to use the ISO CD... "Onboard (something) or USB CD-ROM".
This time, selecting---> "To Setup Windows XP press ENTER"
After agreeing with the EULA thing, I am given this:
Windows XP Prof Setup
If one of the following Windows XP installations is damage, Setup can try to repair it.
-To repair the selected Windows XP installation, press R
-To continue installing a fresh copy of Windows XP without repairing, press ESC.
Edited by Midnighter, 14 June 2009 - 10:24 PM.